Two of Pakistan’s major cable manufacturers, GM Cables and Newage Cables, have been fined heavily by the Competition Commission of Pakistan (CCP) over price-fixing practices. The decision comes after a detailed investigation into how both companies controlled prices across their dealer networks.
According to the CCP, both companies had set minimum resale prices for their products. This limited the ability of dealers to offer discounts. As a result, competition in the market was restricted and consumers had to pay higher prices.
The total fine imposed by the CCP amounts to Rs 265 million. Newage Cables has been fined Rs 75 million. Meanwhile, GM Cables faces a much larger penalty of Rs 190.22 million. The regulator found clear evidence that both companies were involved in practices that violated competition laws.
The investigation revealed that Newage Cables included pricing restrictions directly in its dealership agreements. On the other hand, GM Cables issued formal notices to enforce price control across its network. These actions ensured that dealers could not sell below a fixed price range.
The CCP reviewed internal documents, including circulars and agreements. These showed that dealers risked losing contracts if they did not follow the set pricing rules. Such measures effectively removed pricing freedom and reduced fair competition in the market.
The case was examined under the Competition Act, 2010. The CCP concluded that both companies violated Section 4 of the law. This section prohibits agreements that distort competition or harm consumers.
As part of the final order, both companies have been directed to immediately stop these practices. They must withdraw all instructions related to price control. Dealers must now be allowed to set prices independently without restrictions.
In addition, Newage Cables has been instructed to remove all discount-related clauses from its agreements. Both companies are required to submit compliance reports within the given deadline.
The CCP also issued a strict warning regarding non-compliance. If the fines are not paid within 60 days, an additional penalty of Rs 500,000 per day will be imposed. The regulator says this step is necessary to ensure fair competition and protect consumers in Pakistan’s cable market.
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The ruling is being seen as an important move towards improving market transparency. It also sends a clear message that price-fixing will not be tolerated.
